Sri Lanka Approves Setting Up of LNG JV with India, Japan

Sri Lanka  approved February 27 the signing of a trilateral memorandum of understanding to establish an LNG terminal in the country, the government said the following day. However  it did not give a date for the actual signing.

Indian Petronet LNG last September said it would partner with Japan's Mitsubishi and Sojitz Corporation to set up Sri Lanka's first liquefied natural gas (LNG) terminal near Colombo. The Sri Lankan government issued a letter of intent to the Indian government regarding the plan during the visit of Indian foreign minister Sushma Swaraj to Colombo September 1, 2017.

Sri Lanka will have 15% of the proposed joint venture through Sri Lanka Gas Terminal; Petronet LNG will have 47.5%; and Sojitz Corporation and Mitsubishi, the remaining 37.5%.

The joint venture will develop an LNG terminal in Sri Lanka to regasify LNG and deliver gas to power plants, the domestic and transport sectors. The capacity of the LNG terminal will be decided upon based on the gas demand in Sri Lanka. It is expected to be developed within two years after the completion of initial formalities, Petronet LNG said last year.